Bed Bath & Beyond is seeking shareholder approval for a reverse stock split as part of its efforts to avoid bankruptcy. The embattled retailer’s stock has fallen to new lows, prompting the move to convert up to 20 shares into one. The company’s proxy filing with the Securities and Exchange Commission indicates that the reverse stock split will be discussed and decided upon at a special meeting on May 9, at a ratio of 1-for-10 to 1-for-20, yet to be determined. A reverse stock split means that each outstanding share will be converted into a fraction of the share, with each share of Bed Bath worth one-tenth of a new share if a 1-for-10 stock split is completed. Bed Bath & Beyond had previously warned that without the reverse stock split, it could face bankruptcy, which is becoming an increasingly likely prospect in recent months.
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On the date of publication, Gregory Timmons did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer/contributor.